Hyderabad: Stock market frenzy sparks surge in cyber frauds targeting young investors

The cyber fraudsters after obtaining the database of those keen on investing in the share market are contacting them through WhatsApp and directing them to telegram groups or website.

Hyderabad: With the craze for investments in stock market high among the educated class especially the young IT professionals, the cyber fraudsters are using the demand as bait to con the investors.

The cyber fraudsters after obtaining the database of those keen on investing in the share market are contacting them through WhatsApp and directing them to telegram groups or website.

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“Fraudsters are hyper active when there is lot of public discussions about established companies announcing their Public Offering (IPO) or demands for shares of a particular company are high. Cashing upon the situation, they send message to the unsuspecting people and dupe them,” said Cyberabad DCP (Cybercrimes), K Shilpavalli.

The victims are mainly the unemployed youth and young IT professional who look for some income sources. “Instead of believing the messages landing in their phones and proceeding, the people should verify the credentials of the platforms where they are investing their money,” said the official.

The cybercrime officials said the fraudsters prefer the ‘trading fraud’ modus operandi because there is ample time and scope for them to cheat and dupe the people. The fraud is spread over a time period compared to other frauds and there is lot of scope for the fraudsters to withdraw the money from bank accounts.

In other frauds the victims usually realize they are duped within a short time and inform the national cybercrime helpline portal 1930 instantly thereby stopping the transfer of amount it is slightly difficult in trade frauds, said the official.

An IT professional lost Rs. 15.50 lakh to the fraudsters who trapped him through a Whatsapp group and later collected the money by convincing him to download an “CHC-SES’ – a mobile phone based app.

The victim believing the persons in the Whatsapp group “Stockfrontline K14′, transferred Rs. 15.50 lakh to the bank accounts provided by them and realized he was duped when he was unable to withdraw the profits or the real component. The fraudsters asked him to deposit more money towards different taxes.